Rachel Reeves is preparing to launch a search for a heavyweight outsider to lead Britain’s main banking regulator with Katharine Braddick, a senior Barclays executive and former Treasury official, emerging as a potential frontrunner.

The Treasury is expected to advertise within days for a new chief executive of the Prudential Regulation Authority (PRA), which supervises banks and insurers.

The appointment will replace Sam Woods, who has completed two terms in the role.

Sources told Sky News at the weekend that the recruitment process could begin as early as next week and run for several months.

GROWING THE ECONOMY

Braddick, who joined Barclays in 2022 after a decade at the Treasury, is expected to be among the applicants.

She previously held senior roles at the Financial Services Authority and was closely involved in Brexit-related financial legislation. She is now group head of strategic policy.

A Treasury spokesperson said: “Growing the economy is the Chancellor’s number one mission. Every regulator has a part to play by regulating for growth, not just risk.”

Ms Reeves is understood to favour candidates from outside the existing regulatory establishment, part of a broader push to make watchdogs more growth-focused and less bureaucratic.

FINANCIAL REFORM

Internal candidates are thought to include David Bailey, the Bank of England’s executive director for prudential policy.

The move follows a series of reforms across the UK’s financial regulators.

Earlier this year, the Payment Systems Regulator was abolished, while both the PRA and Financial Conduct Authority (FCA) have rolled back proposed diversity and inclusion rules.

Woods’ next move will be closely watched in the City, with speculation that he could be a future contender to succeed Andrew Bailey as Bank of England Governor when his term ends in 2028.

Barclays was approached for comment.